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Module-1

Chapter-4
HR Planning & Recruiting

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Objectives of this Chapter
1. Explain the main techniques used in
employment planning and forecasting.
2. List and discuss the main outside sources of
candidates.
3. Effectively recruit job candidates.
4. Name and describe the main internal sources
of candidates.
5. Explain how to recruit a more diverse
workforce.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Human Resource Planning
• The success of an org. depends largely on the
quantity & quality of its human resources.
• No org. can be successful in the long run without
having the right number & the right kind of people
doing the right jobs at the right time.
• Procurement of the right kind & right number of
human is the first operative function of HRM.
• Before selecting the right man for the right job, it
becomes necessary to determine the quality &
quantity of people required in an org.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• This is the function of HRP or manpower
planning.
• HRM begins with manpower planning.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Concept of HRP

• HRP has been defined as “ the process by which


management determines how an org should
move from its current manpower position to its
desired manpower position.
• Through it management strives to have the right
number & right kind of people at the right place,
at the right time, doing things which result in
both org, & the individual receiving, maximum
long range benefit.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• HRP is a process of determining & assuming that
the org will have an adequate process of qualified
persons, available at the proper times, performing
jobs which meet the needs of the enterprise &
which provides satisfaction for the individuals
involved.
• In short, HRP is the process of determining
manpower needs & formulating plans to meet
these needs.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Characteristics of HRP
1. HRP like all planning is future oriented. It
involves forecasts of the manpower needs in
future time period.
2. HRP is an on-going or continuous process
because the demand for & the supply of human
resources undergo frequent changes.
3. HRP is an integral part of corporate planning.
Without a corporate plan, there can be no
manpower plan. Whether or not the manpower
plans meet the org requirements & are in tune
with the reality depends on how clearly the goals
are defined.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
4. The basic purpose of HRP is to make optimum
utilisation of an org’s current & future human
resources, it is necessary to relate future
human resources to future needs of the org.
5. HRP has both quantitative & qualitative
aspects. The former implies the right number of
employees while the later means the right
talent required in the org.
6. HRP is the primary responsibility of
management as to ensure effective utilisation
of the org’s hr.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
7. Human resource plans can be long term or
short term
8. HRP is a two-phased process, it includes
demand & supply.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Objectives of HRP
The main objectives of HRP are as follows
1. To ensure optimum use of existing human
resources.
2. To forecast future requirements for human
resources.
3. To provide control measures to ensure that
necessary human resources are available as &
when required.
4. To link human resource planning with
organisational planning.
5. TO determine levels of recruitment & training
HRM, Lect-Naziya Lakhani, TNRC
MS,Rajkot
6. To estimate the cost of human resources &
housing needs of employees.
7. To provide a basis for management development
programmes.

The ultimate purpose of manpower planning is “to


relate future human resources to future
enterprise needs so as to maximise the future
return on investment in human resources.”

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Problems in HRP
1. Inaccuracy
2. Employees Resistance
3. Uncertainties
4. Inefficient Information System
5. Lack of Top Management Support
6. Time & Expense

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
HRP Process
1

Corporate Analysis
M
a
n M
p
o 2 4 3 o
w d
e
r Demand Manpower Supply if
Forecast Gaps Forecast y
o
b O
j r
& g
P
o 5 Pl
li
ci a
e Manpower Plans n
s
s

Monitoring & Control


1. Analysing Organisational Plans

• First of all, the objectives & strategic plans of the company are
analysed.
• It is related to future work activity.
• Each plan can further be analysed into sub-plans & detailed
programmes.
• The future org structure & job design should be analysed.
• It is necessary to be made clear & changes in the org structure
should be examined so as to anticipate its manpower
requirement.
• It is necessary to study business plans because all manpower
plans are related to it.
• A company’s plan are based on economic forecast, company’s
sales & expansion forecast.
HRM, Lect-Naziya Lakhani, TNRC
MS,Rajkot
Forecasting Personnel Needs
Forecasting
Tools

Trend Analysis Ratio Analysis Scatter Plotting

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
1. Trend Analysis:- Study of a firm’s past employment needs
over a period of years to predict future needs.

2. Ratio Analysis:- A forecasting technique for determining


future staff needs by using ratios between, for example, sales
volume & number of employees need

3. Scatter Plot:- A graphical method used to help identify the


relationship between two variables.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
2. Forecasting Demand for Human Resources
• It is necessary to make projections for new positions to be
created & the vacancies arising in current manpower.
• Job analysis & forecasts of future activity levels help in human
resource forecasting.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
3. Forecasting Supply of HR

• Every Org has two sources of supply of HR- Internal &


External
• Internally, HR can be obtained for certain posts through
Promotions & Transfers.
• HR flow in & out of org due to several reasons
Inflows Outflows
Promotions
New Recruits
Transfers

Promotions Retirements
Resignations
Transfers
Deaths

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
4. Manpower Gap
• Net hr requirements or manpower gaps can be identified
by comparing demand forecasts & supply forecasts.
• Such comparison will reveal either deficit or surplus of hr
in future.
• Deficit suggest the number of persons to be recruited &
Surplus suggest Termination.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
5. Action Planning
• Once the manpower gaps are identified , plans are
prepared to bridge this gaps

• Action Plan
1) Recruitment plan
2) Redundancy plan
3) Promotion plan
4) Training & Development plan

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
6. Monitoring & Control
• Action plan is working properly or not
• Any addition to the manpower must be considered at the top
level management
• Keeping a close watch on overtime
• Measuring the efficiency of manpower
• Seeing the utilisation of manpower
• See the level of Job satisfaction.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• HRP helps determine the no. & type of people a firm needs.

• Job analysis specify the tasks & duties of job & the qualifications
expected from prospective job holders.

• The next logical step is to hire the right number of people of the right
type to fill the jobs.

• Hiring involves two broad groups of activities 1) Recruitment & 2)


Selection.

Determine
HRP Job
Recruitment &
Selection Needs
Analysis

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Measuring Recruiting
Effectiveness

Evaluating
Recruiting
Effectiveness

What to How to
Measure Measure

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Concept of Recruitment
• In simple terms, recruitment is understood as the process of
searching for & obtaining applicants for jobs, from among
whom the right people can be selected.

• Theoretically, recruitment process is said to end with the


receipt of applications, in practice the activity extends to the
screening of applications so as to eliminate those who are
not qualified for the job.

• Recruitment refers to the process of employee hiring.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Recruitment involves attracting & obtaining as many
applications as possible from eligible job-seekers.

• The process of seeking & attracting a pool of people from


which qualified candidates for job vacancies can be chosen.

• Recruitment is the process of searching for prospective


employees & stimulating them to apply for jobs in the org.

• Effectively recruitment is the process of getting the right kind


of people to apply for the vacancies in an organisation.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Recruitment & Selection together constitute Employment.

• Recruitment, as process, starts with identification of the


need for hr & ends with getting the prospective employees
to apply for the vacancies available.

• Selection starts where recruitment ends & deals with


choosing the right candidates & getting the best job-fit.

• The aim of an effective recruitment program is to attract the


best people for the job & aid the recruiter by making a wide
choice available.

• A good job description helps in attracting the right kind of


candidates for the job.
HRM, Lect-Naziya Lakhani, TNRC
MS,Rajkot
Importance of Recruitment
• Recruitment represents the first contact that a company makes with
potential employees.
• It is through the recruitment that many individuals will come to know a
company, & eventually decide whether they wish to work for it.
• A well planned & well managed recruiting effort will result in high quality
applicants.
• High quality emp cannot be selected when better candidates do not know
of job openings, are not interested in working for the company & do not
apply.
• The recruitment process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide
enough information about the jobs so that applicants can make
comparisons with their qualifications & interests, & generate enthusiasm
among the best candidates so that they will apply for the vacant position.
• A recruiting programme helps the firm to attract highly qualified &
competent people.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Factors affecting Recruitment

External Internal
Forces Recruitment Forces

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Recruitment Process

Recruitment Policy

Recruitment Organisation

Choose the Sources & Methods or


Techniques of Recruitment

Screening of the Applicants

Assessment or Evaluation of the


Recruitment Programme

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
1. Recruitment Policy :-

• Objectives of recruitment. Provides framework of implementation of


recruitment programme in the form of procedures. Policy lays down:-

1. Filling vacancies with the best qualified individuals.


2. Extent of promotion from within.
3. Attitudes of enterprise in recruiting its old employees, handicaps,
part time, women, relatives of present employees.

Elements of Good Recruitment Policy

1. Organization's objectives- Both in short and long term. Areas wise, job
wise.
2. Identification of recruitment needs:- Which type of quality employees
want in the org.
3. Preferred Source of recruitment:- For each category. Internal source, or
external source of recruitment.
HRM, Lect-Naziya Lakhani, TNRC
MS,Rajkot
4. Criteria of selection and preferences:-Based on conscious thought
and serious deliberations. To whom we have to give the first
preference.
5. The cost of recruitment and financial implications of the same

• Flexible enough to meet changing needs of an organization.


• Designed to ensure employment opportunities for its employees on
long-term basis.
• Match the qualities of employees with the requirement of work for
which employed.
• It should highlight the necessity of establishing job analysis.
• To find and employ the best qualified person for each job.
• To offer promising opportunities for life-time working careers.
• To provide programme and facilities for personal growth on the job

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
2. Recruitment Organisation :-

• Each enterprise has its own procedure that brings desired quality and
quantity of manpower at min. cost.
• Common practice is to centralize recruitment.
• Centralization helps in consistency and efficiency.
• Employee records up to date.
• Reduces administrative cost.
• It tends to make the selection of workers Properly.
• Develops centralized manpower pool in a company.
• Provides wider opportunities.
• It tends to reduce favoritism as a basis for selection.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
3. Choose the sources & Methods or Techniques of Recruitment

Source of Recruitment
1. Internal
Promotion and Transfers, rehire

Merits:- improves morale, better evaluation, promotes loyalty, known


policies, less costly.

2. External
Advertisement, Employment Exchange, Placement Agencies etc.

Merits:- Provides requisite type of people


best selection, in long term economical.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
Methods or Techniques of Recruitment

• Direct:- Sending traveling recruiters to educational institutions,


seminars, Employees’ contact with public,

• Indirect:- Advertisement in news papers, radio, trade and professional


journals. Ad must be carefully written,

1. To visualize type of applicants trying to recruit.


2. List advantages that the company offers.
3. In which news paper to run. Local, state, all India

• Third Party. Commercial or private employment agencies, state


agencies, placement offices.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
I Advertisements E
R
N X
T
E Campus Recruitment
T
Present Employees
E C E
Walk-ins
R R R
Consultants
N
Employee Referrals U N
A I Contractors A
L L
T
Displaced Persons
S Former Employees S
M
O O
E Radio & Television
U U
N Professional or Trade Association
R R
Previous Applicants
C T C
E-Recuriting
E E
S HRM, Lect-Naziya Lakhani, TNRC Competitors S
MS,Rajkot
4. Screening

• Screening of applications can be regarded as an integral


part of the recruitment process.
• The selection process will begin after the applications
have been scrutinized & short listed.
• The purpose of screening is to remove from the
recruitment process, at an early stage, those applicants
who are visibly unqualified for the job.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
5. Assessment or Evaluation of an Recruitment
programme

• Periodical Evaluation to determine cost per applicant, the


application/hiring ratio.
• Use this information to improve the recruiting process.
• Ethical practices. Tell “truth in hiring”, good and bad.
• Cost for advertisement or other recruitment methods.
• The main question is how the whole recruitment process is helpful to
the org for selecting the best candidate for the specific job.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Recruiting a More Diverse Workforce

• Diverse workforce isn’t just socially responsible, it is


necessity, given globalization

• Eg:- Eastman Kodak Co. Include Disable People in


their org.
1. Single Parents
2. Older Workers
3. Recruiting Minorities & Women's
4. Reservation
5. The Disabled
HRM, Lect-Naziya Lakhani, TNRC
MS,Rajkot
Recruiting A More Diverse
Workforce
Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Developing & Using Application Forms

1. Purpose of Application Forms

• With a pool of applicants, the prescreening process can


begin.
• The application form is usually the first step in this process
(some firms first require a brief, prescreening interview or
online test)
• A filled in form provides four types of information
1. First you can make the judgments on substantive matters, such as whether
the applicant has the education & experience to do the job
2. Second, you can draw conclusions about the applicant’s previous process
& growth, especially for management candidates.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
3. Third, you can draw tentative conclusions about the applicant’s stability
based on previous work records
4. Fourth, you may be able to use the data in the application to predict which
candidates will succeed on the job & which will not.

2. Using Application Forms to Predict Job Performance

– It is possible to use application form information to predict which


candidates will be successful & which won’t, in much the same way
that one might use test for screening.

– The basic process involves conducting statistical studies to analyze


the relationship between
1. Biodata responses on the application form (distance from work)
2. Measure of success on the job.

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Derecruitment

• Process of reducing the size of organization’s workforce or


restructuring its skill base.
• Used to meet the demands of dynamic envt.
1. Firing:- permanent involuntary separation
2. Lay-off:- temporary involuntary termination
3. Attrition:- workers who voluntary resign are not replaced
4. Transfer:- Lateral or downward job change
5. Reduced work week:- Fewer hours/ week or part time work
6. Early retirement:- incentives offered to resign
7. Job sharing:- more than one employee shares one full-time
position

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot
• Questions

1. What are the pros & cons of five source of Job


Candidates ?
2. What are the four main type of information that
application forms provide?
3. What are the main things you would do to recruit &
retain a more diverse work force?
4. Explain Human Resource Planning Process ?
5. Explain Recruitment Process?
6. What are the Internal & External Source of
Recruitment?

HRM, Lect-Naziya Lakhani, TNRC


MS,Rajkot

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